Vietnam's Investment and Planning Minister Bui Quang Vinh shakes hands with Japanese Ambassador Hiroshi Fukada at the signing ceremony on ODA pledge on March 5

Japan has pledged to provide Vietnam US$243.9 million in official development assistance to help the country with climate change, economic management and competitiveness, Vietnam News Agency reported.

Bui Quang Vinh, Vietnam’s Minister of Investment and Planning, signed an exchange of notes on the issue Wednesday with Japanese ambassador Hiroshi Fukada, who said the loan aimed to facilitate a boost in foreign investments in the country.

Forty percent of the funds will be earmarked for the country’s Support Program to Respond to Climate Change, and the rest is being called the Economic Management and Competitiveness Credit 2.

Vinh said he highly appreciated the pledge because Vietnam, while being among countries most affected by climate change, is in the middle of major economic reforms.

Japan has remained Vietnam’s biggest ODA sponsor over the past two decades.